Private Equity–Acquired Residential Treatment Facilities vs Other For-Profit Facilities

How do the price and facility characteristics of residential substance use treatment facilities owned by US private equity (PE) firms compare with other for-profit facilities?In this cross-sectional study including 341 residential facilities, mean daily rates were 15.6% higher at PE facilities compared with non-PE facilities. Compared with non–PE-acquired control facilities, PE-acquired facilities were less likely to offer detox services (74.8% vs 88.8%) and private rooms (12.1% vs 25.7%), and more likely to make postcall contact attempts.Results of this study suggest that, as PE continues to expand its presence in behavioral health, understanding these dynamics and their impacts will be important for addressing an ongoing national substance use crisis.

Corresponding Author: Jane M. Zhu, MD, MPP, MSHP, 3181 SW Sam Jackson Park Rd, Portland, OR 97239 (zhujan@ohsu.edu).

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